Making Tax Digital for Income Tax Self Assessment Delayed to 2024
Posted on in Business News , Cycles News , Political News
In a 
written ministerial statement made by Lucy Frazer MP, Financial Secretary to the Treasury, the government has announced it will be introducing compulsory Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) a year later than planned.
MTD for ITSA will now be introduced in the tax year beginning April 2024. General partnerships will not be required to join MTD for ITSA until the tax year beginning in April 2025. It will be confirmed at a later date when all other types of partnerships will be required to join.
The delay is a result of the challenges faced by businesses throughout the pandemic. The delay allows more time for businesses to join and take relevant preparations and an extended HMRC pilot testing phase.
Making Tax Digital (MTD) first launched for those with taxable turnover above the VAT threshold (£85,000 per annum) in April 2019. Since MTD for VAT was launched in April 2019, over 1.5 million businesses have signed up, including a number of VAT-registered businesses that have joined voluntarily.
VAT-registered businesses with taxable turnover below the threshold need to have joined MTD for their first tax return from April 2022. Over 30% of these customers have already signed up voluntarily.
More information about the delay can be found in the Government press release here: Businesses get more time to prepare for digital tax changes
